Apollo Tyres on Monday said it had acquired Germany-based tyre distributor Reifencom GmbH for Euro 45.6 million (around Rs.301 crore).
Reifencom is one of the largest tyre distributors in Germany and has an online presence in six countries – Germany, France, Italy, Austria, Switzerland and Denmark. In addition, it operates 37 stores and service centres across Germany.
“The acquisition is a strategic fit in growing our European business. It will enable Apollo to improve its mix of distribution channels in Germany and Europe, and aid in increasing the visibility of Apollo and Vredestein tyres in the offline and especially the fast growing online retail space,” Neeraj Kanwar, Vice-Chairman and Managing Director, Apollo Tyres, said.
Shares of Apollo Tyres ended 1.68 per cent higher on the BSE at Rs.157.70 a share.
In a statement, Apollo Tyres said the success of Reifencom GmbH could be attributed to its highly efficient logistics system, which ensures guarantee of a high degree of availability of all kinds of tyres and rims, even during busy periods such as spring and autumn.
With an objective to provide world-class products and services at very competitive prices, Reifencom procures tyres and rims from leading manufacturers, thereby ensuring a high-level of quality, it added.
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